I consider myself to be a horizontal thinker. I'm someone who thinks across different knowledge bases to connect the dots to create newproducts and bring new ideas to market.
to the Climate Bonds Initiative. The successes of the program have far exceeded Pagitsas’ expectations. “It is really fulfilling to see this work being realized,” Pagitsas said. “In 2016, I was thrilled to hit $3.6 billion. That was a high watermark for me. I couldn’t believe it when we hit nearly $28 billion in 2017. So here we are in 2019, and our numbers through the first quarter are more than $54 billion in green financing.” Perhaps equally impressive are the positive economic reverbera- tions from Fannie Mae’s Multifamily Green Financing Business. Newly constructed or retrofitted green multifamily buildings financed by Fannie Mae are estimated to have contributed $7.2 billion in workers' income, according to Fannie Mae’s Multifamily Green Bond Impact Report. They’ve added about $14.6 billion to the United States’ gross domestic product and supported or created 170,000 jobs to build or ret- rofit more than 550,000 apartment owners who made their proper- ties more efficient through green financing are projected to recoup their investment within six years on average. Tenants at these prop- erties are projected to see annual utility expenses cut by about 10 percent or $145 on average. Pagitsas — a mountain biker and former collegiate sailing captain — is also thrilled at the program’s stagger- ingly positive environmental impact, in addition to its business success. “Yes, I’m a tree hugger — a tree hugger that sees value in profitable businesses,” she said. “The two are not incompatible in my mind.” The projected environmental impacts from the $51.7 billion of Fannie Mae Green Bonds are esti- mated to have saved about 4.3 bil- units, Fannie Mae reported. Fannie Mae estimates that
lion kilo British thermal units (kBtu) of source energy each year. That’s enough energy to power about 1,454 homes for an entire month, accord- ing to data from the U.S. Energy Information Administration. In other savings, the program is projected to have cut about 5.9 billion gallons of water use annual- ly, which is equivalent to filling the 8.5 acre Bellagio Fountains in Las Vegas 269 times over, according to data from WaterSmart. It has also reduced greenhouse gas emissions by 287,000 metric tons, which is equivalent to driving nearly 61,000 passenger vehicles for one year, according to data from the Environmental Protection Agency. Such metrics have earned Fannie Mae more than a dozen national and international commendations rec- ognizing its multi-year commitment to creating environmentally sustain- able, healthier, and more affordable U.S. housing. Most recently, the
program was recognized at Cli- mate Bonds Initiative's Green Bond Pioneer Awards for its role as the largest green bond issuer world- wide and for instilling transparency to the growing market. Pagitsas also earned the CBI’s "Green Bond Champion" award in 2019 for her role in bringing struc- tural diversity and innovation to the market in 2018 through Fannie Mae's multifamily green mortgage finance program. While she loves to highlight the envi- ronmental and social benefits, Pagit- sas said the numbers also tell another compelling story of determination. “What this should tell people is that this isn’t a one-hit wonder,” she said. “If we had done $3.6 billion in financing and had never done another loan, then I hadn't built a simple, elegant, competitive product. What it's shown is that the product is attractive and that the process is simplified … It's really
about a new way of doing business.” What motivates her passion for this work? Pagitsas loves to help connect people and their expertise to make a difference and create new ideas. “I consider myself to be a horizon- tal thinker. I’m someone who thinks across different knowledge bases to connect the dots to create new prod- ucts and bring new ideas to market,” she said. But the deep-dive into one area of mortgage financing is a great thrill too. “We’ve got underwriters with 20 years of experience under- writing loans and they’ve seen it all. I enjoy sitting down with them, and because they know so much, I can say ‘What about this idea? … And they can throw things at it and make it better.” Looking ahead, Pagitsas is excited to grow the impact of Fannie Mae’s Multifamily Green Financing and help other real estate organizations make positive environmental impacts.
“The bottom line is that Fannie Mae's committed to this,” Pagitsas said. “We were the first ones to issue an agency green commercial mortgage-backed security back in 2012 and we've been leading the market ever since. With that leadership comes the opportunity to create new products, but also to share knowledge with others that are seeking to replicate what we've done. And I welcome the opportuni- ty to share with others.” Pagitsas said she’s encouraged to see not only her colleagues, but other industry leaders embrace environmentally sustainable financ- ing programs and a collaborative approach to achieve their goal. The real estate industry is unified around the idea that there is a hous- ing crisis in the United States, and we need solutions to it, she said. What’s more, Pagitsas said she’s
excited to see borrowers flock to Fannie Mae’s green financing options — thanks in part to their business advantages, but also for their socie- tal and environmental impact. “At the end of the day, Fannie Mae developed a better, faster, more attractive product that caught borrowers’ eyes. They voluntarily chose it. This isn’t government mandated. There are no quotas. This is all about market forces and thinking of new innovative ways to spur investment in better quality assets that result in affordable housing,” she said. •
Bobby Burch is the Founder of Bobby Burch Creative, a small business storytelling studio. Learn more at bobbyburchphotography.com and contact him at bobbyburchcreative@gmail.com.
Source: Fannie Mae Green Bond Impact Report: 2012-2018 (year-end)
18 | think realty magazine :: september / october 2019
thinkrealty . com | 19
Made with FlippingBook Online newsletter